Old Mutual Wealth, comprising Skandia, Skandia International and Old Mutual Global Investors (OMGI), saw net client cash flow (NCCF) increase by 50 per cent in the first half of the year to GBP1.2 billion from GBP0.8 billion in 2013.
IFRS adjusted operating profit (AOP), pre-tax, was GBP120 million for the first half of 2014, up by 11 per cent compared to the prior year (H1 2013: GBP108 million).
The strong NCCF during the period saw funds under management (FUM) increase to GBP80.3 billion (31 Dec 2013: GBP78.5 billion).
Paul Feeney, chief executive of Old Mutual Wealth, says: “Our focus is on building investment solutions that meet different customer needs. We believe that is what people need to help them secure their financial future and these results are a good endorsement of that strategy. The launch of WealthSelect this year is an example of how we can use our platform and asset management expertise to build a service that gives advisers a range of managed portfolio solutions aligned to their clients’ needs. WealthSelect has already taken over GBP200 million in new investment – a clear sign that advisers and their clients value the proposition.
“The acquisition of Intrinsic during the period was a significant milestone in our plans to become a leading investment solutions provider. Building the solutions is one thing but we need to make them more accessible to people and have a direct understanding of what they want. Intrinsic enables us to do that and is an important addition to our business.
“Preparations are well under way for us to start using the Old Mutual brand in the UK at the end of September and internationally at the beginning of next year. This marks a tipping point in our transition from primarily a platform provider to a broader investment solutions provider.”